Opinion Journal: China Slows, India Shines

Morgan Stanley Head of Emerging Markets Ruchir Sharma on the divergent economic paths of two of Asia’s most important economies. Photo: Getty Images

This transcript has been automatically generated and may not be 100% accurate.

... some surprising news this week the IMF said they either use growth rate ... is going to a outpaced China's bike twenty sixteen or twenty seventeen ... or his family through share Sharma stays with me now or a share while this is a big turnaround ... on the ECB is integral faster China's slowing down but I think the combination of bullet I think that these companions between India and China are ... hateful creepy but they may get a bit misleading ... he was like ... that in China as the end of development ... to teach ins five times richer than India ... so it's going from a much higher and the system in income countries was harder for them to grow exotic part Athena for them to do with a look at other countries in history such as Japan Korea Taiwan which the system of the state to develop enough to ... do with the big kids a big maker with ... all the growth rate still about a descendant of the protected income to China today it's a China's ... is slowing down despite a fight that's no doubt that is a national of gravity that's ... when China down ... at deciding as insight into the cycle of the obese it's much easier to roll from baggies I think what's fascinating out here is how sentiment towards India has shifted would mean that that that out ... exactly at this time last year ... the consensus in Dallas was in good time to anything right now the end of Saturday continue ego ... and he's a Coke and a default language out there and all of a sudden there's so much optimism ... regarding India say so the thought that is used to house a giant sentiment can be how quickly things get done around ... and in this disastrous happened that the fact that talking with longstanding ... the net finance minister in Dallas was quoted as ... saying that I'm cool business because of Cole Porter yet when you hit a new investing night there that whatever they say in Davos which are exactly the opposite and I will be the right thing this was the novelist with a two thousand and eleven the anti consensus on their way as ... that of the ... beating consensus of how weird BG has counted economic slowdown of two thousand and nine by ... looking to get a bit ... students now we know what happen to the consensus so yes I've been to the coast of dollars that would eventually wisdom from their ... hands up so to be more would join but a but having said that it's still interesting to ... see this shift away as India ... into the what's happened out there but not by Mr Molly he's come out so the keys for reform what kind of reforms exactly ... in what the CRE put into place if anything with a big test when guests come next month if it mean that didn't get isn't it budget and ... as a little from your expedient of the budget in India ... is is big reforms statement out that it's not just about ... an accounting exercise ... second what he has to do and it is to focus more on privatization of sitting down states and public sector ... enterprises out there anybody speaking about set of streamlining ... the AMP's of is ... all ... all business in India some ... stuff is faces in the what to do business that market with a bigger nations acquire doubt this is a token what hitting the top ... and into the getting that going so far what he's done is try to open up some sectors such as insurance defense ... to more foreign and this is a big deal exactly demand that this is that Riyadh what that entails among the twentieth of Sydney ... uni s to present something dramatic because he's been saying he wants this to be a consummate if one is the document that's right time Mr Moti has has really talked up reform ... are there other people in the government though that you're watching Sunday it travel to the country like right on the connections are the ideal weapon of the one with a finance this to say but ... in all these countries in wana with this is of the politically connected to the eyes of the lesson of the top six in the foot into expanded and downs of ... the um rather than relying on the progress of the people to do it so it's addiction a piece it's easy to be offered with a broad message for the wood is this ... the debatable the STD goods such as Russia IPO takes it to you see no progress on the phones ... the annuity doesn't coming to buy such as India posted Indonesia ... we seen a fresh push to its economic reforms ... so I think was how full the country to make the new leaders ... and the sharp the countries with Stevie designed talk ... to me like this country ... Morgan Stanley and emerging markets for sure ... that's progress